Trading Statement for the year ended 30 June 2014 ITALTILE LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1955/000558/06) Share code: ITE ISIN: ZAE000099123 (“Italtile” or “the Group”) TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2014 Italtile is currently finalising its results for the year ended 30 June 2014. During the year the Group disposed of the following non-core businesses: - Cladding Finance Proprietary Limited (“Cladding Finance”), a niche provider of outsourced debtors’ solutions (disposal effective 30 September 2013); - The eight store CTM retail operation in Australia via a facilitated management buyout (disposal effective 31 October 2013). Italtile retained and continues to manage the Group-owned properties out of which the operations traded; and - Allmuss Properties Zambia Limited (“Allmuss Properties Zambia”), a property holding company (disposal effective 31 December 2013). The contribution to Group earnings of Cladding Finance and Allmuss Properties Zambia was immaterial. Following these disposals, the results of these businesses have been recorded as discontinued operations in the Group’s results for the year. Accordingly, the summarised financial information presented below refers to continuing operations only. The Group’s basic earnings per share (“EPS”) will be between 18% and 20% higher and headline earnings per share (“HEPS”) will be between 23% and 25% higher, compared to the previous corresponding period being 48.3 cents and 47.4 cents respectively. HEPS have been adjusted for the post-taxation impact of the following once-off events: - Profit of R4.4 million achieved on the sale of property in South Africa; - Profit of R4.4 million achieved on the sale of Allmuss Properties Zambia (referred to above); and - Impairment of R20 million (2013: R5 million) recorded for property held in Australia (referred to above). Both the EPS and HEPS calculations include a R17 million IFRS2 charge, of which R11 million is a once-off charge, related to an equity-settled staff share incentive scheme implemented during the year. Turnover from continuing operations increased by 33%, including the contribution of nine previously franchised CTM stores converted to Group-owned stores. Excluding the contribution from these nine stores, turnover from comparable Group-owned stores and entities increased by 20%. Average selling prices were marginally ahead of inflation. The performance reported in the year is attributable to improved supply and range of product across the merchandise categories in the Group’s Italtile, CTM and TopT retail operations. This was facilitated by the integrated supply chain, which supported the Group’s policy of “Right product at the right time, place and price”; good volume growth in tile sales in the CTM division; and in the context of Rand weakness, the competitive advantage afforded by consistent supply of well-priced imported products achieved through long- standing supplier relationships and underpinned by the Group’s strong balance sheet. REVIEW OF RESULTS The information on which this announcement is based has not been reviewed or reported on by Italtile's auditors. PUBLICATION OF RESULTS The Group's results for the year ended 30 June 2014 are expected to be published on SENS on or about 21 August 2014. Johannesburg 7 August 2014 Sponsor Merchantec Capital Date: 07/08/2014 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.